ADB is providing $575m loan through Ordinary Capital Resources and $25m from ASEAN Infrastructure Fund for the Electricity Grid Strengthening – Sumatra Program.
ADB Southeast Asia Department project administration head Rehan Kausar said: ‘PLN has a long-term development program to strengthen and expand power systems across the country.
"This assistance will help it deliver sufficient and reliable electricity supply to Sumatra, improving the quality of life and supporting efforts to make the region a major industrial center."
The funds will be used to upgrade the existing 150KV transmission lines, as well as to extend substations and install new and upgraded equipment, including switchgears.
Under the distribution work, the funds will be used to expand and reinforce the medium-voltage and low voltage networks, including the installation of distribution transformers, service connections and customer meter boxes.
In addition, the program will offer capacity building and institutional support for PLN.
The work on the project is scheduled to start in this month, and is expected to complete by December 2019.
According to ADB, the improvements will enable Sumatra to achieve an electrification rate of 90% by 2019 and support the overall government target of achieving universal access to electricity by 2024, from the current national rate of around 84%.
Image: ADB has provided $600m loan to upgrade transmission and distribution system in Sumatra. Photo: courtesy of Asian Development Bank.
